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TMI Blog1997 (8) TMI 469X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment year 1979-80 (CST) and for setting aside the levy of a sum of Rs. 2,500.22 as tax thereon, and for the exclusion of a sum of Rs. 53,179.59 from the turnover of Standard Match Industries (E) Unit for the assessment year 1979-80 (CST) and setting aside the levy of Rs. 1,064.00 as tax on that sum. 3.. The assessee claimed that these amounts had been collected as Y.R.T.V. Mahimai at 15 paise per bundle of matches sold, and the amounts so collected from the customers had been collected for and on behalf of Yennarkey R. Ravindran, Tilagavathy Vidhyasala, a charitable institution running a school. It is also the case of the assessee that the amounts collected were not taken as trading receipts or profits, and that they were credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reported in [1979] 116 ITR 60; AIR 1979 SC 346 [Commissioner of Income-tax (Central), New Delhi v. Bijli Cotton Mills (P.) Ltd.] but it has not been overruled. 6.. Learned counsel for the assessee contended that though the decision of this Court has not been expressly overruled by the apex Court, nevertheless having regard to the ratio laid down by the apex Court in the case of Bijli Cotton Mills [1979] 116 ITR 60; AIR 1979 SC 346, it must be held that the decision of this Court in Pandaria Pillai v. State of Madras [1973] 31 STC 108 has been impliedly overruled. The further submission of counsel was that the definition of "turnover" in the Central Sales Tax Act is different from the definition found in the Tamil Nadu General Sales Tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the compulsory nature of levy, the court held that notwithstanding that compulsory nature, the amounts received for "dharmada" could not be regarded as part of the price or a surcharge on price of goods purchased by the customers. 10.. The court held that "the amount of 'dharmada' is undoubtedly a payment which a customer is required to pay in addition to the price of the goods which he purchases from the assessee, but the purchase of the goods by the customer would be the occasion and not the consideration for the 'dharmada' amount taken from the customer". The court observed that it is true that without payment of 'dharmada' amount the customer may not be able to purchase the goods from the assessee but that would not make the payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The apex Court thus made a distinction between the computation of turnover for the purpose of Sales Tax Act, and the determination of income for the purpose of Income-tax Act and held that the amounts received as contributions to "dharmada" could not be regarded as income which income-tax could be levied. 12.. This Court in the case of Pandaria Pillai [1973] 31 STC 108 after noticing judgments of the apex Court, as also the Court of Appeal in the UK, which had laid down that even the amount collected as sales tax, if not separately shown would form part of the consideration, and part of the turnover as the dealer had not been constituted as the collecting agent for collecting sales tax dues on the sale of the goods, held that the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he sale of the goods to them. It is the assessee who had collected it as obligations, consideration, though assessee earmarked it for charity and utilised the same for that purpose. 14.. The argument that the definition of "turnover" in the Central Sales Tax Act is quite different from the definition of "turnover" in the Tamil Nadu General Sales Tax Act, and therefore, the amounts received towards mahimai are required to be excluded for the purpose of determining the turnover under the Central Sales Tax Act, cannot be accepted. The definition of "turnover" in the Central Sales Tax Act in section 2(j) also refers to the aggregate of the sale prices received and receivable by the assessee in respect of sales of any goods in the course of int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clear that the mahimai collected by the assessee for the specific purpose of being spent for the charitable purposes mentioned in the bills would form part of the sale price and forms part of the amount payable as consideration for the sale of the goods. The ratio of the decision of this Court in the case of Pandaria Pillai [1973] 31 STC 108 is applicable to the assessments under the Central Sales Tax Act, also. The decision of this Court in the case of Pandaria Pillai [1973] 31 STC 108, is still good law and has not been expressly or impliedly overruled by the decision of the apex Court. 16.. We do not therefore find any infirmity in the order of the Commissioner. Consequently, these appeals are dismissed, but in the circumstances without ..... X X X X Extracts X X X X X X X X Extracts X X X X
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